The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, permanently restoring 100% bonus depreciation on qualified assets. This legislative change is anticipated to have a direct financial benefit for WhiteFiber, Inc. The company expects this act to reduce its U.S. federal cash tax payments for the remainder of 2025.
The restoration of full bonus depreciation allows businesses to immediately deduct the full cost of eligible assets, rather than depreciating them over several years. This can significantly improve a company's cash flow by reducing its taxable income in the short term. For WhiteFiber, which is in a capital-intensive expansion phase, this is a favorable development.
While a material impact on the overall tax provision is not expected, the reduction in cash tax payments provides WhiteFiber with additional liquidity. This can be reinvested into its ongoing data center projects and GPU deployments. The act supports WhiteFiber's ability to fund its growth initiatives more efficiently.
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